Expected return and standard deviation. Use the following information to answer the questions. ??State of ??Economy Probability of State Return on Asset D...

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Finance

Expected return and standard
deviation.
Use the following information to answer the questions.
??State of
??Economy
Probability
of State
Return on
Asset D in
State
Return on
Asset E in
State
Return on
Asset F in
State
??Boom
0.38
0.08
0.31
0.19
??Normal
0.48
0.08
0.17
0.13
??Recession
0.14
0.08
?0.22
- 0.04
a.??What is the expected return of each? asset?
b.??What is the variance of each? asset?
c.??What is the standard deviation of each? asset?
?Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

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Transcribed Image Text

Expected return and standarddeviation.Use the following information to answer the questions.??State of??EconomyProbabilityof StateReturn onAsset D inStateReturn onAsset E inStateReturn onAsset F inState??Boom0.380.080.310.19??Normal0.480.080.170.13??Recession0.140.08?0.22- 0.04a.??What is the expected return of each? asset?b.??What is the variance of each? asset?c.??What is the standard deviation of each? asset??Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

??State of ??Economy	Probability of State	Return on Asset D in State	Return on Asset E in State	Return on Asset F in State
??Boom	0.38	0.08	0.31	0.19
??Normal	0.48	0.08	0.17	0.13
??Recession	0.14	0.08	?0.22	- 0.04